Draft Law on Industrial Estates: One-Stop Licensing, How Is It Different from OSS?

On 5 October 2026, Commission VII of the House of Representatives of the Republic of Indonesia (DPR RI) considered a proposal to introduce a one-stop licensing system in the Draft Law on Industrial Estates. The proposal emerged after the management of Mitra Karawang Industrial Estate raised a number of challenges in managing the estate, including licensing and land-related issues.

Previously, in July 2026, Commission VII of the DPR also highlighted licensing as an issue that continued to hinder investment. This issue indicates that, although the government has simplified licensing procedures, business operators continue to face obstacles in carrying out their business activities.

A one-stop licensing system has therefore emerged as one of the proposals warranting consideration. However, can this policy genuinely reduce bureaucracy, or will it instead introduce additional regulations?

Why Does Licensing Remain a Problem?

One of the issues highlighted by industrial estate managers is the administrative process involving multiple government agencies. Companies must not only meet the requirements for conducting business but also deal with spatial planning and land-related matters that may affect their industrial activities.

During a working visit to Millennium Industrial Estate in Tangerang in July 2026, Commission VII of the DPR noted that general licensing through the Online Single Submission (OSS) system had been functioning well, but land administration bureaucracy remained an obstacle for investors and industrial estate managers.

This example demonstrates that investment barriers do not always originate from the licensing application system itself. Land administration processes and the respective authorities of the relevant government agencies can also affect the smooth conduct of business activities.

A similar situation can be observed in the issues raised by the management of Mitra Karawang Industrial Estate. Challenges relating to spatial planning and the extension of Building Use Rights Certificates (Sertifikat Hak Guna Bangunan or SHGB) indicate that resolving industrial estate issues sometimes requires improvements to land administration and spatial planning, rather than merely simplifying business licensing procedures.

Accordingly, it is important to distinguish between business licensing issues and land administration and spatial planning issues. Although the two are interrelated, they cannot always be resolved through the same approach.

OSS Is Already in Place: What Needs to Be Improved?

The government has already established OSS as an integrated system for submitting business licensing applications. This system operates within the framework of risk-based business licensing, which is regulated, among other instruments, by Government Regulation (PP) No. 28 of 2025.

In addition, the development and management of industrial estates are regulated under Law No. 3 of 2014 on Industry, as amended by Law No. 6 of 2023, and Government Regulation No. 20 of 2024 on Industrial Zoning.

In light of these existing regulations, the Draft Law on Industrial Estates needs to clarify which issues cannot be resolved under the current system and regulatory framework. If a one-stop licensing system merely provides a single location for submitting applications, the policy risks duplicating the functions of OSS.

The more important issue is how to ensure effective inter-agency coordination, a clear allocation of authority, and the timely processing of applications. The draft law also needs to clarify the relationship between industrial estate licensing services, OSS, and other sectoral regulations to prevent overlapping requirements and regulatory conflicts.

A One-Stop Licensing System Must Have Clear Benchmarks

A one-stop licensing system does not necessarily mean that all authority must be centralized in a single institution. Technical agencies may continue to perform their duties within the scope of their respective mandates. However, a clear coordination mechanism must be established so that companies are not required to repeatedly process documents or seek clarification from multiple agencies.

The Draft Law on Industrial Estates could specify which party is responsible for coordinating the process, the time limit for completing each stage, and how business operators may submit complaints when delays occur.

Time certainty should also be accompanied by an explanation of the causes of delays and identification of the parties responsible. This would enable companies to determine the status of their applications and the steps they need to take next.

Nevertheless, procedural simplification must not eliminate essential requirements, such as spatial planning compliance, environmental protection, and safety provisions. The objective is not merely to accelerate the issuance of licences, but to ensure that the process is clear, efficient, and remains compliant with applicable regulations.

Do Not Stop at the One-Stop Concept

The Draft Law on Industrial Estates presents an opportunity to address obstacles that have not been resolved through the existing licensing system. However, its success cannot be measured solely by the establishment of a one-stop service.

More important benchmarks include a reduction in repetitive procedures, a clear allocation of responsibilities, defined service deadlines, and the availability of resolution mechanisms when the process encounters obstacles.